Nov. 27 at 5:31 PM
Canadian steel stocks are expected to rise Thursday after the federal government unveiled support measures for the domestic steel industry, including lower interprovincial transport tariffs. Shares of Algoma Steel Group, Russel Metals, and Stelco Holdings gained on the announcement, which aims to boost demand for Canadian steel and improve Ontario’s pricing competitiveness.
RBC Capital Markets said the reduced transport fees should make Ontario steel more competitive nationwide, potentially lifting domestic demand. The bank expects Algoma in particular to benefit next year from the new “buy Canadian” policy for steel plate used in government projects.
However, RBC cautioned that the measures may not solve underlying market issues, noting that Canada is likely to remain oversupplied and that prices may still fall short of levels needed for Algoma to profitably serve customers.
$RUS $ASTL